The California Department of Financial Protection and Innovation has permanently revoked BlockFi’s lending license following its bankruptcy and regulatory issues.

BlockFi, a crypto lending platform, collapsed in 2022 amid financial troubles tied to the downfall of crypto exchange FTX. 

BlockFi had extended a $400 million credit line to FTX, and FTX’s bankruptcy had ripple effects, contributing to BlockFi’s financial instability and eventual bankruptcy filing.

BlockFi’s rocky past

The DFPI’s revocation of BlockFi’s license stems from findings that the lender breached California’s Financing Law by failing to assess borrowers’ ability to repay and charging interest before loans were issued, according to a now-deleted DFPI press release.

BlockFi also did not provide required credit counseling and inaccurately disclosed loan terms, impacting borrowers’ credit scores and ability to access future loans.

In addition to the revocation, BlockFi reached a settlement with the DFPI, agreeing to stop unsafe practices. The regulator imposed a $175,000 fine, waiving the payment to focus on creditor repayments, per the release.

“We are pleased to put this matter behind us,” said Lucas Moskowitz, Robinhood Markets’ general counsel in an emailed statement. “The settlement fully resolves the Attorney General’s concerns related to historical practices, and we look forward to continuing to make crypto more accessible and affordable to everyone.”

The city of Santa Monica, California officially added a “Bitcoin Office” section on its website to bolster industry partnerships and increase employment opportunities.

The move comes about a month after the Santa Monica City Council unanimously approved a pilot program for the Santa Monica Bitcoin (BTC) Office.

The initiative is being implemented at no cost to the city, officials say.

Following the approval of The City Council, Santa Monica unveiled the new section on its website on Thursday, Aug. 8. 

The city’s administration is reportedly collaborating with the Proof of Workforce Foundation to educate Santa Monica-based residents and businesses about BTC and its transformative potential in the modern economy.

The Proof of Workforce Foundation is a nonprofit organization dedicated to bridging the gap between emerging digital technologies and local communities. The foundation, created in 2023, plans to equip individuals with the skills needed for the evolving job market and driving economic growth in Santa Monica. 

Beyond its educational mandate, the Bitcoin Office aims to foster partnerships within the Bitcoin industry to bolster Santa Monica’s economic recovery and create new job opportunities.

According to the website page, the office will facilitate strategic collaborations to strengthen the local economy and position the “Silicon Beach” as a leading hub for Bitcoin innovation.

The office’s launch was followed by a promotional post about an upcoming Bitcoin festival, Bitcoin Peer-to-Peer, on X. According to the post, Santa Monica plans to host the event on Oct. 18, a day after the proposed date.